Have you ever felt that something is wrong in your organization? Lets find out why!

It looks like organizations make rational and well–thought–out decisions. However, it is not always true.

balance_work

?How it actually looks like?

THE ORGANIZATION ACTIVITY DEPENDS ON ORGANIZATIONAL HABITS, FORMED BY PERSONNEL, WHICH MAKES VARIOUS PROFESSIONAL DECISIONS. THERE IS NO ONE PERFECT MODEL OF MAKING DECISIONS. CONVERSELY, DECISIONS CONSIST OF DIFFERENT METHODS AND VARIOUS PROCESSES AND HABITS.

These organizational habits (Nelson ir Winter (1982) calls them “routine”) are essential to work properly in business and organizations.

Habits mean hundreds of common rules that are necessary working in organization. It also allows workers to experiment and use their ideas without asking for permission. Habits form “organizational memory” that shows the organizational culture and reduce the feeling of instability. Most importantly it helps to avoid conflicts between the individuals and groups working together.

If one worker tries to be in higher position to other, all the personnel tends to join forces against him/her. Many people are convinced that the company is the place where everyone works for the same purpose – to earn as much money as possible. Everything is totally different in reality. Companies do not remind those big happy families. Usually companies consist of many different sectors. Supervisors of these sectors tend to compete with each other for better salary and authority. Sometimes they out-rival others telling gossips and making other secret attacks.

Different sectors also rival each other in popularity and compete for supply. Some of managers play off one worker against another on purpose that none of them would succeed.

?How it actually looks like?

COMPANIES ARE NOT FAMILIES. THEY ARE IN THE DIFFERENT SITES OF BATTLE IN A CIVIL WAR.

Companies have particular habits and routines that are essential to create peaceful working environment where everyone forgets about competition and are concentrated on their daily tasks. In war it is called “truce” and it means the temporal suspension of tense relationship between workers and employers. The main point of these organization models is to keep up with habits and routines when making decisions. It is essential to avoid concurrence and make more money. For this reason, in many companies there is a common agreement that supports ambitious members but not self – seekers. On the other hand, you will be rewarded if you work hard to improve the teamwork of your department.

The models of routines and truce are rather complex organizational models. According to Nelson and Winter, the progress of conflicts in organizations usually:

“ARE PREDICTABLE AND FOLLOW THE REGULAR ROUTINE … THE WORK THAT HAS BEEN DONE AS WELL THE NUMBER OF REPRIMANDS AND CITATIONS REMAINS THE SAME…NO ONE IS TRYING TO THROW THE OPPONENT OVERBOARD BY SUDDENLY SWING THE SHIP”.

Usually truce model and routines work perfectly. Although, sort of competition still exists, institutional habits help to control it and contribute to business development. If we draw a scheme of all your and your colleagues work habits and non-formal government structures, relationships, unions and conflicts they represent, we could make a map, a guide which shows how the organization works. These routines as well as truce model are crucial for successful business. However, those determinant routines are long-lasting only if they are correct and scrupulous. If the truce is unbalanced and there is no natural peaceful atmosphere these routines tend to collapse.

There is an opinion that the best way to solve the problem is to make an impartial truce agreement. This is the good start. However, it seems that is not enough.  Well – balanced authority relationship does not guarantee success in business. Organization leaders have to develop their habits that are necessary to create natural and well – balanced peace which is essential for an efficient business, though, it also important to maintain their leading position.

Truce model can be dangerous if not well – organized. Organization has to integrate habits that would balance the competence sphere and choose one person or goal which is above others. Organizational models should prescribe responsibilities and who has to do particular, even difficult tasks.

If the prescribed norms and agreements are destructive and not well – judged they can be changed. However, company cannot change these inappropriate principles if it’s only the leader’s decision. On the contrary, wise company leader waits for natural crisis and turning – point when everyone feels that some models and methods have to be changed.

habits_in_business

Reference:
Duhigg, C. 2012. The power of habit. Nelson and Winter. 1982. An Evolutionary Theory of Economic Change.